Date of Award

10-1-2021

Publication Type

Thesis

Degree Name

M.A.Sc.

Department

Civil and Environmental Engineering

First Advisor

Y.H. Kim

Second Advisor

C. Lee

Third Advisor

E. Kim

Keywords

Demand response, Electricity market, Electricity vehicles, Options

Rights

info:eu-repo/semantics/openAccess

Abstract

Electricity spot prices in emerging electricity markets exhibit high volatilities and occasional distinctive price spikes due to the non-storable nature of electricity. Furthermore, the inherent variability and uncertainty of renewable energy generation require balancing supply and demand all the time for electric power systems. In the context of reliable electricity service, demand response (DR) programs allow end-users to adapt their electricity usage to changes in the price of electricity over time. DR programs include price-based and incentive-based DR programs. Real-time pricing (RTP) is a price-based DR program, which charges customers electricity rates based on the utility’s real-time production costs. Electric vehicles (EVs) can utilize their flexibility in load curtailment to provide potential demand response opportunities. However, the current DR programs available do not fully consider EVs’ potential for renewable energy integration through demand-side management. In this research, we propose introducing financial options as additional incentives for EV users under RTP, reinforcing their encouragement to align the renewable energy supply peak better. Also, the proposed DR program can guarantee peak load reduction reducing utility’s risk exposure in demand peak. A realistic study on the Ontario electricity market shows that the proposed DR program significantly saves EV users’ charging costs. Also, the research results show that the proposed DR program allows electricity utilities to dynamically optimize electric grid operations without increasing the price volatility and defer the need to construct new generation capacity.

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